Pronghorn Co. is building a new hockey arena at a cost of $2,560,000. It receive

Question

Pronghorn Co. is building a new hockey arena at a cost of $2,560,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,110,000 to complete the project. It therefore decides to issue $2,110,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 11%.

Prepare the journal entry to record the issuance of the bonds on January 1, 2016. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Title and Explanation

Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.)

Assume that on July 1, 2019, Pronghorn Co. redeems half of the bonds at a cost of $1,110,800 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

July 1, 2019

July 1, 2019

I posted the whole problem, I just need help with the last problem where the ? marks are

Date

Account Title and Explanation

Debit Credit Jan 1, 2016 Cash 2234264 Bonds Payable 2110000 Premium on Bonds Payable 124264

Explanation / Answer

Journal Entries :-

* Premium on Bonds Payable :-

= (($2209429 - ($10163 / 2)) - $2110000) / 2

= (($2209429 - $5082) - $2110000) / 2

= $94347 / 2

= $47174

** Loss on Redumption on bonds :-

= $1110800 - (($2209429-$5082)/2)

= $1110800 - $1102174

= $8626

Date Particulars Debit($) Credit($) July 1 Interest Expenses A/c Dr. 60759 Premium on Bonds Payable A/c Dr. 2541 To Cash A/c 63300 July 1 Bonds Payable A/c Dr. 1055000 Premium on Bonds Payable A/c Dr.* 47174 Loss on Redumption of Bonds A/c Dr.** 8626 To Cash A/c 1110800

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